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๐Ÿ“š Due Diligence

The Nonbank Shadow of Banks

New York Fed economists conclusion: "the evolution of banks and nonbanks is highly intertwined."

The Nonbank Shadow of Banks Nicola Cetorelli and Saketh Prazad Source: https://libertystreeteconomics.newyorkfed.org/2023/11/the-nonbank-shadow-of-banks/ Highlights: * "In this post, we look at the joint evolution of banksโ€”referred to as depository institutions from here onโ€”and nonbanks inside the organizational structure of bank holding companies (BHCs)
dismal-jellyfish ๐Ÿ“š Due Diligence
Too Damn High!

Bank Term Funding Program usage reported at $109.068B, above $100B for the 21st consecutive week! An over reliance on central bank funding that is growing faster than the rate of inflation, BTFP is a moral hazard!

Hello, happy Friday and beginning to the weekend! Borrowing from the Bank Term Funding Program hit a NEW all time high this week ($109.068 billion)--the 21st consecutive week above $100 billion! What we are reviewing: 1. Bank Term Funding Program (BTFP) 2. Discount Window/Primary Credit 3. "
dismal-jellyfish ๐Ÿ“š Due Diligence
BGC Financial, L.P. (Respondent)

FINRA 'discipline' Alert! From December 2014 through January 2021, BGC Financial, L.P. could NOT effectively detect spoofing and layering on ~7,765,000 transactions. Penalty? Censure, $200,000 fine, with no admission of wrong doing.

Hello and happy Thursday, I hope everyone is enjoying a great week on this Friday eve! I would like to share some more FINRA 'discipline' with y'all, this time it's BGC Financial, L.P.! As these releases convey a ton of information, I hope
dismal-jellyfish ๐Ÿ“š Due Diligence
Hedgies r Fuk: "We also note that, since the data ending date of May 9th, 2023, when this note was drafted, hedge fund short futures positions have continued to rise"

Hedgies r Fuk: "We also note that, since the data ending date of May 9th, 2023, when this note was drafted, hedge fund short futures positions have continued to rise"

"Should these positions represent basis trades, sustained large exposures by hedge funds present a financial stability vulnerability" Source: https://www.federalreserve.gov/econres/notes/feds-notes/recent-developments-in-hedge-funds-treasury-futures-and-repo-positions-20230830.html During 2018 and 2019, when hedge fund cash-futures basis trades positions were large, sponsored repo borrowing likely constituted a small percentage
dismal-jellyfish ๐Ÿ“š Due Diligence
Yale University: 66.1% of retail investors and 56.03% of institutional investors believe the probability of a catastrophic stock market crash in the U. S., like that of October 28, 1929 or October 19, 1987, in the next six months is above 10%.

Yale University: 66.1% of retail investors and 56.03% of institutional investors believe the probability of a catastrophic stock market crash in the U. S., like that of October 28, 1929 or October 19, 1987, in the next six months is above 10%.

https://som.yale.edu/centers/international-center-for-finance/data/stock-market-confidence-indices/united-states Wut mean?: I wonder why folks may be feeling this way? Oh yeah... * Liquidity Fairy Alert! It just keeps going up... Bank Term Funding Program usage above $100B for the 12th consecutive week ($107.386B vs $107.242B 8/17). An
dismal-jellyfish ๐Ÿ“š Due Diligence
Seasonally adjusted, in June, consumer credit increased (AKA DEBT) at an annual rate of 4.3%.

Seasonally adjusted, in June, consumer credit increased (AKA DEBT) at an annual rate of 4.3%. For the second quarter, consumer credit increased at an annual rate of 4%. Revolving credit (credit cards) increased at an annual rate of 7.1%

Consumer Credit Outstanding (Seasonally adjusted): Wut mean? * Total consumer credit increased at an annual rate of 4.3% in June 2023. * For the second quarter, consumer credit increased at an annual rate of 4%. * Revolving credit (credit cards) increased at an annual rate of 11.2%--DEBT is BALOONING WAY
dismal-jellyfish ๐Ÿ“š Due Diligence